The Hindu Business Line : Book profit in Infosys

Nifty (956.95): The overall outlook for the Nifty continues to remain weak. The immediate resistance lies at around 971 As of now, taking short positions in the index would be preferred course of action. A move past 971 would warrant closure of short positions and initiation of long positions in the Nifty.

ITC (Rs 613.05): After touching a high of Rs 634.9, the scrip turned weak on Thursday. As mentioned last week, the overall outlook for ITC continues to remain weak. A drop below Rs 610 would confirm the bearish outlook. Fresh short positions with a close stop loss may be considered once the scrip closes below Rs 610. Existing holders could remain invested with a stop at Rs 610 and use price upmoves to trim holdings in ITC. Fresh buying may be avoided.

Hindustan Lever (Rs 159.1): Similar to ITC, the share price of Hindustan Lever too was confined to a narrow range. The overall outlook for scrip continues to remain weak. A drop below Rs 156 would be an early indicator of further weakness. Existing holders could look for avenues to reduce exposure while Fresh short positions may also be considered once the scrip drops below Rs 156. Given the weak outlook, fresh buying may be avoided for the time being.

Infosys Technologies (Rs 4,015): The price movement in the scrip was right in line with last week's expectations. As anticipated, the scrip reversed right in the earlier mentioned target zone of Rs 4,100-4,150. After touching a high of Rs 4,113.7, the scrip turned weak. The scrip appears to be in the last leg of the current rally. A short-term downward correction would ensue once the current leg of the rally gets completed. Existing holders could book profit while a drop below Rs 3,950 could be used to take short positions.

Satyam Computers (Rs 243.7): The move above the earlier mentioned resistance level of Rs 238 has effectively negated the bearish view. A move above Rs 253 would impart bullishness in the scrip. Existing holders could remain invested with a stop at Rs 237. Aggressive traders could consider long positions once the scrip moves past Rs 253. A drop below Rs 237 would warrant closure of long positions and also initiation of fresh short positions.

(Note: The analysis and opinions expressed in these columns are based on the technical analysis of the past price behaviour. Analysis and price targets are based on the Elliott Wave Analysis. There is a risk of loss in trading)

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